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Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each...

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Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each year it has an average collection period of 43 days and a average payment period of 32 days. The firm's annual sales are $3.3million Assume there is no difference in the investment per dollar of sales in inventory. recelvables, and payables: and a 365 -day year. a. Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle b. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simutaneously. (1) Shortens the average age of inventory by 4 days. (2) Speeds the collection of accounts recelvable by an average of 8 days. (3) Extends the average payment period by 8 days. c. It the firm pays 12% for its resource investment, by how much, If anything, could it increase its annual proft as a result of the changes in part b? d. If the annual cost of achleving the profit in part c is $34,000, what action would you recommend to the firm? Wby? a. The firmis cash conversion cycle, CCC, is days. (Round to the nearest whole day.)

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